Failure in controlling costs lands Dewan Sugar Mills in losses yet again

MG News | December 27, 2018 at 11:20 AM GMT+05:00

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December 27, 2018 (MLN): Dewan Sugar Mills Limited’s losses for the year ended September 30^th 2018 have grown by 4% to RS. 787 million, on account of rising operating expenses and finance cost as compared to the corresponding period last year.

Despite an increase in the company’s topline earnings by 59%, the substantial increase in cost of sales by about 44% and Distribution and Selling cost by 116% resulted in amplified losses for the company.

Moreover, increase in Finance cost and Taxation also contributed in the deteriorated financial positon of the company.

Nonetheless, the company’s basic and diluted loss per share were recorded at Rs.10.37 per share, down from Rs.11.36 last year.

Profit and loss account for the year ended September 30th 2018 (Rupees)
	Sep-18	Sep-17	% Change
Sales - net	4,738,180,041	2,984,804,024	59%
Cost of Sales	(5,002,555,537)	(3,464,924,572)	44%
Gross (Loss)	(264,375,496)	(480,120,549)	-45%
Administrative and General Expenses	(121,809,761)	(125,327,840)	-3%
Distribution and Selling Costs	(199,213,616)	(92,325,122)	116%
Other Operating Income	(147,008,906)	47,410,865
(Loss) from Operations	(732,407,779)	(650,362,645)	59%
Finance Cost	(85,570,976)	(78,740,582)	9%
Provision for obsolescence and slow moving stocks and stores	-	(44,207,269)
(Loss) before Income Tax	(817,978,755)	(773,310,496)	6%
Taxation	30,179,911	17,403,864	73%
(Loss) for the Year (after Income Tax)	(787,798,844)	(755,906,632)	4%
(Loss) per Share - Basic	(10.37)	(11.36)	-9%

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